99-3469. Interest Assumption for Determining Variable-Rate Premium; Interest Assumptions for Multiemployer Plan Valuations Following Mass Withdrawal

[Federal Register Volume 64, Number 29 (Friday, February 12, 1999)]
[Notices]
[Page 7218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3469]


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PENSION BENEFIT GUARANTY CORPORATION


Interest Assumption for Determining Variable-Rate Premium; 
Interest Assumptions for Multiemployer Plan Valuations Following Mass 
Withdrawal

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of interest rates and assumptions.

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SUMMARY: This notice informs the public of the interest rates and 
assumptions to be used under certain Pension Benefit Guaranty 
Corporation regulations. These rates and assumptions are published 
elsewhere (or are derivable from rates published elsewhere), but are 
collected and published in this notice for the convenience of the 
public. Interest rates are also published on the PBGC's web site 
(http://www.pbgc.gov).

DATES: The interest rate for determining the variable-rate premium 
under part 4006 applies to premium payment years beginning in February 
1999. The interest assumptions for performing multiemployer plan 
valuations following mass withdrawal under part 4281 apply to valuation 
dates occurring in March 1999.

FOR FURTHER INFORMATION CONTACT: Harold J. Ashner, Assistant General 
Counsel, Office of the General Counsel, Pension Benefit Guaranty 
Corporation, 1200 K Street, NW., Washington, DC 20005, 202-326-4024. 
(For TTY/TDD users, call the Federal relay service toll-free at 1-800-
877-8339 and ask to be connected to 202-326-4024.)

SUPPLEMENTARY INFORMATION:

Variable-Rate Premiums

    Section 4006(a)(3)(E)(iii)(II) of the Employee Retirement Income 
Security Act of 1974 (ERISA) and Sec. 4006.4(b)(1) of the PBGC's 
regulation on Premium Rates (29 CFR part 4006) prescribe use of an 
assumed interest rate in determining a single-employer plan's variable-
rate premium. The rate is the ``applicable percentage'' (currently 85 
percent) of the annual yield on 30-year Treasury securities for the 
month preceding the beginning of the plan year for which premiums are 
being paid (the ``premium payment year''). The yield figure is reported 
in Federal Reserve Statistical Releases G.13 and H.15.
    The assumed interest rate to be used in determining variable-rate 
premiums for premium payment years beginning in February 1999 is 4.39 
percent (i.e., 85 percent of the 5.16 percent yield figure for January 
1999).
    The following table lists the assumed interest rates to be used in 
determining variable-rate premiums for premium payment years beginning 
between March 1998 and February 1999.

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                                                            The assumed
        For premium payment  years beginning in:           interest rate
                                                                is:
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March 1998..............................................            5.01
April 1998..............................................            5.06
May 1998................................................            5.03
June 1998...............................................            5.04
July 1998...............................................            4.85
August 1998.............................................            4.83
September 1998..........................................            4.71
October 1998............................................            4.42
November 1998...........................................            4.26
December 1998...........................................            4.46
January 1999............................................            4.30
February 1999...........................................            4.39
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Multiemployer Plan Valuations Following Mass Withdrawal

    The PBGC's regulation on Duties of Plan Sponsor Following Mass 
Withdrawal (29 CFR part 4281) prescribes the use of interest 
assumptions under the PBGC's regulation on Allocation of Assets in 
Single-employer Plans (29 CFR part 4044). The interest assumptions 
applicable to valuation dates in March 1999 under part 4044 are 
contained in an amendment to part 4044 published elsewhere in today's 
Federal Register. Tables showing the assumptions applicable to prior 
periods are codified in appendix B to 29 CFR part 4044.

    Issued in Washington, DC, on this 8th day of February 1999.
John Seal,
Acting Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 99-3469 Filed 2-11-99; 8:45 am]
BILLING CODE 7708-01-P